Improving the financial reporting process
Article Abstract:
Management accountants can significantly enhance the financial reporting process by making financial information readily available to managers who need it. This can be accomplished by using information systems to deliver the financial information directly to managers. Fortunately, most companies already have most of the computer resources needed to make this possible, such as a client server network, desktop tools, a graphical user interface and a financial data warehouse. All that remains to be done is to input the required financial data using a template which is useful to the managers for whom the information is intended. Guidelines for selecting the performance measures that would be useful to managers are given, along with steps for creating templates with which the data could be processed. The use of such financial information for budget preparation and variance analysis is also discussed.
Publication Name: Management Accounting (USA)
Subject: Business, general
ISSN: 0025-1690
Year: 1995
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How management accountants can communicate better: management accountants overestimate the ability of nonaccountants to understand spreadsheets
Article Abstract:
Techniques for improving the clarity of managerial accounting reports and internal financial statements are discussed. Among the suggestions are: (1) minimizing the use of accounting jargon, (2) defining accounting terms when they must be used (or substituting descriptive phrases for the terms), (3) headlining each financial statement with paragraphs interpreting the main points of the statement, (4) using report captions and headings that are descriptive, (5) listing large amounts of related data, (6) ensuring that series within the text are parallel in structure, (7) underlining to emphasize important points, (8) keeping sentences short, active in voice, and structured in a subject-predicate pattern, (9) minimizing the use of adjectives, (10) eliminating vague pronouns, and (11) employing graphic techniques to explain and highlight vital data.
Publication Name: Management Accounting (USA)
Subject: Business, general
ISSN: 0025-1690
Year: 1987
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Why not disclose for supply commitments?
Article Abstract:
The financial statements of many companies fail to disclose their commitments with suppliers to provide goods. Such supply commitments are contractual obligations that may result in extensive losses in situations where the acquired goods have not been hedged in an environment characterized by price fluctuations. Supply commitments carry economic effects and should be disclosed on financial statements. The disclosure should contain enough information that allows users to understand the nature of the supply commitment to the supplier company and the term covered.
Publication Name: Management Accounting (USA)
Subject: Business, general
ISSN: 0025-1690
Year: 1991
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